Netflix confirms crackdown on password sharing to begin soon

Streaming giant Netflix has announced it will end the sharing of passwords in the US and other countries by the end of the second quarter.

The move follows last year's announcement of the password-sharing crackdown amid declining subscriber numbers and increasing competition from rivals such as Disney.

The company had previously said it would crackdown on password sharing by the end of the first quarter, but the enforcement was delayed, causing some customers to express their dissatisfaction on the internet.

In response to users' concerns, Netflix has revealed that it has learned more about how best to roll out these changes and what matters to members most. The company says it wants to maintain travel/watching-on-the-go and the ability for people to better control access to their accounts, as well as transfer profiles to separate accounts. These improvements led to a shift in the broad launch from late Q1 to Q2 to implement those changes. 

Netflix's password-sharing crackdown began in Latin America in 2022 and later rolled out in Canada, New Zealand, Portugal and Spain. People in other parts of the world, including the US and UK, can expect it to happen before July.

The move is aimed at monetising the 100 million users who share passwords, allowing Netflix to invest in more shows. The company also wants to offer a range of price points and feature sets to suit consumers' differing needs. It now offers pricing tiers for HD, and an ad-supported option is gaining traction.

While the end of password sharing may lead to more Netflix users leaving, the company believes that this will benefit revenues in the long run.

"While this means that some of the expected membership growth and revenue benefit will fall in Q3 rather than Q2, we believe this will result in a better outcome from both our members and our business," Netflix said.